Operation strategy refers to the collective mandated, concrete action chosen and stimulated by business corporate strategies. Operation management refers to the planning, organizing and supervising the production, services or manufacturing activities of a business. The RAC had developed a number of operational strategies. First, the RAC deployed its own branded patrol force to rescue and fix customers’ vehicles at the roadsides. Second, RAC invested in state-of-the-art technologies to efficiently dispatch rescue patrols and receive calls from its members.
RAC rebranded as well as changed its corporate colors to attract the younger market segments and to improve market share. RAC is acquired by Lex plc and the British School of Motoring that increased its market share rapidly. RAC used private contractors during busy times and weekends, and at night-time. Last, RAC used independent market researchers to measure these issues. There are a number of causes of poor customer services are not hiring the right people, lack of training, lack of belief in the company and products or services, lack of respect for the customers, and lack of empathy. RAC is behind its competitor, AA, in providing better customer management and quicker response time when a customer waits for service. Therefore, it should improve its service quality by hiring skilled and experienced people, providing training to the people, using more advanced technology, and reviewing and monitoring the process using a wider range of techniques
Table of Contents
2.0 Operational strategy of RAC Motoring.
3.0 Process map.
4.0 Factors involved in poor customer service.
5.0 Recommendation and justification.
Operation management has been a key factor in business success, mainly for the service company. This is because service organizations have various kinds of processes including understanding customer needs and expectations, getting feedback on services. In addition, the operation management process and marketing team plays a significant role in meeting customer changing needs and expectations (Gupta and Boyd, 2008). This paper applies an understanding of operation strategies and operations management along with risk analysis in a service organization, called RAC Monitoring. Then, this paper defines the operation strategies applied by RAC. Next, a process map is developed. Then, this paper identifies several factors that cause poor customer service. Finally, this paper provides recommendations justification to improve the service quality.
2.0 Operational strategy of RAC Motoring
According to Dhoul (2014), operation management refers to the planning, organizing and supervising the production, services or manufacturing activities of a business. Operation management is classified mainly as logistics and supply chain management. According to David (2015), operation strategies refer to the procedures and delivery process of values to the customers. Terry (2014) said operation strategy refers to the collective mandated, concrete action chosen and stimulated by business corporate strategies.
This strategy is implemented within operational functions. In a word, operation strategy specifies how a business should employ its operation activities and capabilities to promote and support business strategies (David, 2015). Operation strategy has a long-term concern on how the business operation resources can be determined and developed to ensure high degree of compatibility between the business strategies and business resources. The operation strategy also focuses on business long-term decisions related to timing, technology, location, process and capacity (Linda, 2013).
The RAC had been operating in-vehicle breakdown and recovery industry for more than 100 years. The RAC had developed a number of operational strategies to achieve the organizational goals that are defined and described as follows:
Firstly, the RAC deployed its own branded patrol force to rescue and fix customers’ vehicles on the roadsides. It offered high-quality service at high prices in comparison to competitors. Although it gained establishment and trust from its customers, it was number second in case of customer awareness, where the Automobile Association (AA) was the number one because of the high quality of its call taking and efficiency of its dispatch system. The RAC was owned by its own members. Therefore, it does not need to make profit for any other external shareholders and it uses only market share as the important measure of success (RAK Case Study, 2017).,,,,,,,,,